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Viable business models for city logistics : Exploring the cost structure and the economy of scale in a Swedish initiative

Katsela, Konstantina LU and Pålsson, Henrik LU (2020) In Research in Transportation Economics
Abstract

This paper addresses the challenge of achieving profitable city logistics initiatives. A case study examines the financial continuity of one such initiative in Sweden by exploring its cost structure, the relative importance of its revenue variables, and the variables that determine the economy of scale. The results show the potential of obtaining a viable business model and provide new insights into the economy of scale for city logistics. The paper presents a detailed cost-benefit analysis of the implementation of a six-month pilot programme for a city logistics initiative. The initiative combines the consolidation of transportation of goods for both private enterprises and municipalities, and shows that the relationship between goods... (More)

This paper addresses the challenge of achieving profitable city logistics initiatives. A case study examines the financial continuity of one such initiative in Sweden by exploring its cost structure, the relative importance of its revenue variables, and the variables that determine the economy of scale. The results show the potential of obtaining a viable business model and provide new insights into the economy of scale for city logistics. The paper presents a detailed cost-benefit analysis of the implementation of a six-month pilot programme for a city logistics initiative. The initiative combines the consolidation of transportation of goods for both private enterprises and municipalities, and shows that the relationship between goods volumes and profitability is not linear, but rather follows a logarithmic shaped curve. A sensitivity analysis highlights the impact of goods volumes and pricing on the financial performance of the business model.

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author
and
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
Business model, City logistics, Cost-benefit analysis, Costs, Economy of scale, Revenues, Sensitivity analysis
in
Research in Transportation Economics
article number
100857
publisher
Elsevier
external identifiers
  • scopus:85089138784
ISSN
0739-8859
DOI
10.1016/j.retrec.2020.100857
language
English
LU publication?
yes
id
d60c9096-799b-4610-8523-469f73372653
date added to LUP
2020-08-19 13:53:11
date last changed
2020-08-20 01:59:28
@article{d60c9096-799b-4610-8523-469f73372653,
  abstract     = {<p>This paper addresses the challenge of achieving profitable city logistics initiatives. A case study examines the financial continuity of one such initiative in Sweden by exploring its cost structure, the relative importance of its revenue variables, and the variables that determine the economy of scale. The results show the potential of obtaining a viable business model and provide new insights into the economy of scale for city logistics. The paper presents a detailed cost-benefit analysis of the implementation of a six-month pilot programme for a city logistics initiative. The initiative combines the consolidation of transportation of goods for both private enterprises and municipalities, and shows that the relationship between goods volumes and profitability is not linear, but rather follows a logarithmic shaped curve. A sensitivity analysis highlights the impact of goods volumes and pricing on the financial performance of the business model.</p>},
  author       = {Katsela, Konstantina and Pålsson, Henrik},
  issn         = {0739-8859},
  language     = {eng},
  month        = {05},
  publisher    = {Elsevier},
  series       = {Research in Transportation Economics},
  title        = {Viable business models for city logistics : Exploring the cost structure and the economy of scale in a Swedish initiative},
  url          = {http://dx.doi.org/10.1016/j.retrec.2020.100857},
  doi          = {10.1016/j.retrec.2020.100857},
  year         = {2020},
}